Mostly good direction below as far as where you currently stand so I will refrain from reiteration.
To augment Emily and Julie's point below regarding the new law mentioned:
SB931 is the OLD "Short Sale Law" with an effective date of 1/1/11 thru 7/15/11. The law prevented a deficiency judgment after a short sale in most cases; however, it only covered First Trust Deeds on one-to-four residential units.
SB458 became law on 7/15/11. This law prevents a deficiency judgment after a short sale in most cases on ANY Trust Deeds on one-to-four residential units. You can read more about the new law here:
"CA Senate Bill 458 Now Prohibits 1st/2nd Deficiency Judgments*"
As a summary, where applicable, a mortgage lender involved in a SHORT SALE (as opposed to a judicial foreclosure) is now PROHIBITED from engaging in any of the following acts:
1) Collecting a deficiency, 2) Having a borrower owe a deficiency, 3) Requesting a deficiency judgment, 4) Having a court render a deficiency judgment, or 5) Requiring the borrower to pay ANY additional compensation, aside from the proceeds of the sale, in exchange for written consent to the short sale.
1) A Lender seeking damages for fraud or waste; 2) the borrower is a corporation, LLC, or limited partnership; 3) cross-collateralized loan (special rules apply, not very common); 4) Borrower is a political subdivision of the state; 5) a bond lien; or, a public utility lien.
Joe, the 1st answer is in Penn. & is incorrect. The bank cannot ask the seller for a promissory note with new laws passed this last Jan. & July.
It's possible the bank is asking the seller to make a cash contribution, especially if there is a 2nd lien that was an equity line of credit. *(** YOU need to find out what this is!!! NOW. It's possible that you're getting such a killer deal on the house, that you may be able to assist the sellers with that contribution!
Stay ON your agent or the sellers agent. Ask for a SIT DOWN with the listing agent. You need this info NOW on what's going on.
It will be possible to get the close date extended as well. If you'd like to talk about this some more just email me, I won't look back on this same Trulia thread for answers posted after mine.
Realtor Since 1996
Main Street Realtors
Home Buyers Realty
Skip hit it right on-the -nose.... You have certain rights and the Seller has obligations outlined in your Purchase Agreement and its Addenda as signed by you and the Seller.
Where is YOUR agent ? I hope you are not using the Seller's agent to represent you as well !
Another issue you may have is whether you have a deposit in escrow or not. If you do and the Sellers are not responding, how will you get that deposit released and returned?
It sounds like the Sellers may be trying to stay in the property longer and they may "think" they can do so by not responding. They may not have expected the approval to come through as quickly as it did !
As for the Closing Costs Credit - typically the Seller's Lender (Short Sale Lender) will only allow these credits if the Buyer is using FHA financing.
(Just a point of info for Joe Finnerty below. In CA, a short sale lender can no longer request a Promissory Note or any contribution in order to approve a short sale. The lenders have two choices: Approve it or Decline it - they cannot ask for any financial contribution / note from the seller as a condition of Short Sale Approval - ALSO, if a lender approves a short sale in CA - there is NO deficiency.)
Broker / Negotiator
Newport Beach / Palm Desert CA
I assume you signed a Short Sale Addendum form (SSA) with your offer. The answer to your questions are on this form. There is a stated time frame for when the seller must give you a copy of the approval letter. Also, the options the seller has if the original offer needs to be changed. In addition, there is a resolution process in the Purchase Agreement for parties that do not perform as required. Please review with you agent.
Sometimes the counter offer also includes fees that may be required for you, the buyer, to pay. It is essential that you get the details of exactly what was in that counter-offer. If your agent feels that the sellers agent is not responding correctly he/she can always reach out to the agent's broker.
Hope this is of some help.
Prudential Patt White Real Estate
Lehigh Valley, PA